Financial Tribune - Talks are underway between the National Petrochemical Company and Japan�s Sojitz Corporation on building a petrochemical plant with a total investment of �1 billion ($1.06 billion), said Hossein Alimorad, a NPC deputy for investment.

�We started studying the project, after signing an agreement last year� currently we are finalizing negotiations over direct investment in a petrochemical project,� NIPNA, the NPC's official news service quoted Alimorad as saying on Saturday.

In October, the two companies signed a memorandum of understanding to study establishment of a methanol-to-propylene plant in Iran.

�We are in advanced talks over the petrochemical plant with the Japanese company and expect the deal to be finalized in the near future," the official said.

Sojitz will hold a stake in the petrochemical plant, Alimorad said without elaboration.

Polypropylene�is a thermoplastic polymer with wide applications, including�packaging and labeling,�textiles, laboratory equipment and automotive components.

The Tokyo-based company operates in an array of industries, namely energy, minerals, chemicals, automobiles, agricultural and forestry resources, consumer goods and industrial parks. It is the largest seller of commercial aircraft in Japan.

The deal is part of effort to raise installed petrochemical production capacity to 130 million tons annually by 2020.